How You Can Spot Bait and Switch Investment Fraud
The bait and switch scam is one of the oldest tricks in the books, and many investors lose money to these scams every year. As an investment fraud lawyer, I understand that it can be difficult to separate the legitimate investment opportunities from the investment scams, and I’d like to take a moment to explain a little more about the red flags of the bait and switch.
Here are some of the major warning signs of bait and switch investment fraud:
- It’s hidden in the fine print. Always read the “fine print” before you hand over your cash. Sometimes just reading the documents you are given can shed light on fraud.
- You don’t understand the investment plan. If you’re not sure you understand how the investment works or how the promoter is paid, take a little more time to find out before you sign.
- There’s little to no information about the promoter. You are checking up on the promoters, aren’t you? Make sure they have all the necessary licensing and registration, and check into their complaint history.
- You end up getting something different. You may not even realize that you signed up for something other than what was promoted. Read everything you are given and regularly scrutinize your statements to make sure everything looks right.
- The original deal is now “unavailable” or “you don’t qualify.” Here’s one of the biggest signs of a bait and switch—being pitched a different deal because you can’t get the original deal. Be wary if you start hearing about how great another investment product would be instead.
Remember these warning signs and become a better informed investor.
If you have fallen victim to a bait and switch scam, it’s important that you discuss your situation with a skilled investment fraud lawyer before it’s too late. Meyer Wilson would be happy to speak with you in a free and confidential legal consultation to discuss your rights and options today. Simply give us a call or fill out our easy online contact form to get started.
The information contained in The Firm’s posts on its blog, fraud alerts, investigations or elsewhere on the site is based upon information obtained from other sources including, but not limited to, news outlets and federal, state, and regulatory agency filings. All suspects and subjects of postings herein are presumed innocent until proven guilty in a court of law or administrative action and any and all crimes are alleged until a court or regulatory agency finds otherwise .
